Slide 1: Investor presentation September 2016
Investor presentation September 2016
Slide 2: Agenda
Investor presentation Agenda 1H 2016 consolidated results pag. 2 FY 2015 consolidated results pag. 27 2016-23: New regulatory period for electricity distribution in Italy pag. 45 2016-19 Strategic Plan pag. 51 1H 2016 consolidated results annexes pag. 79 FY 2015 consolidated results annexes pag. 106
Slide 3: 1H 2016 consolidated results: Delivery on strategic plan
Investor presentation 1H 2016 consolidated results Delivery on strategic plan July 28, 2016
Slide 4: Opening remarks
1H 2016 consolidated results Opening remarks EBITDA net of forex up 10% on like-for-like basis Latam grows by 40% net of forex despite economic slowdown Outperformance of retail business offsets weak price environment in Italy and Iberia Operational efficiency delivery on track +0.6 GW of addition
Slide 5: Financial highlights (€mn)
1H 2016 consolidated results Financial highlights (€mn) 1H 2016 1H 2015 ∆ yoy Like-for-like Revenues 34,150 37,632 -9% Reported EBITDA 8,053 7,961 +1% Ordinary EBITDA1 7,929 7,688 +3% +5% (5) Reported EBIT 5,210 5,084 +2% Ordinary EBIT 5,125 4,811 +7% Reported Group net income 1,834 1,833 -% Group n
Slide 6: Delivery on strategic pillars
1H 2016 consolidated results Delivery on strategic pillars 2016-19 strategic plan targets 1H 2016 delivery 1 Operational efficiency Total savings of 0.4 €bn 2016 cash costs target: -0.9 €bn 2 Industrial growth 0.3 €bn growth EBITDA in 1H 2016 2016 growth EBITDA target: +0.8 €bn 2016 growth EBITDA
Slide 7: Operational efficiency (€mn)
1H 2016 consolidated results Operational efficiency1 (€mn) Maintenance capex Opex2 Cash cost -14% -4% -7% 5,758 5,376 4,412 4,219 1,346 1,157 2 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 2016 target: 3.1 €bn 2016 target: 8.5 €bn 2016 target: 11.6 €bn 2019 target: 2.8 €bn 2019 target: 8.3 €bn 20
Slide 8: Operational efficiency: opex evolution
1H 2016 consolidated results Operational efficiency: opex evolution Opex evolution1,2 (€mn) Opex by business3 -7% -18% Networks -4% €/end user 58.5 56.8 54.2 47.9 FY 2014 FY 2015 LTM 2019 -1% -20% Renewables (103) 15 (105) k€/MW 76.0 78.7 75.2 61.0 4,412 4,219 FY 2014 FY 2015 LTM 2019 -11% -10% Conv
Slide 9: Industrial growth: operational achievements
1H 2016 consolidated results Industrial growth: operational achievements Networks Retail Renewables Conventional generation 2015-16 2015-19 2015-16 2015-19 2015-16 2015-19 2015-16 2015-19 Free End users +0.7 mn +3.6 mn +1.4 mn +4.1 mn Additions +2.1 GW +9.2 GW Additions +0.4 GW +0.6 GW customers Sma
Slide 10: Industrial growth: capex in execution
1H 2016 consolidated results Industrial growth: capex in execution1 2016-19 growth capex In execution by geography In execution by business By year By COD2 2% 6% 6% 7% 2016 38% 2016 22% 39% 33% 42% 2017 34% 2017 50% 17 €bn 16% 8.9 €bn 8.9 €bn 52% 9% 50% 2018 16% 2018 19% 9% 28% 1% 2019 12% 2019 9% I
Slide 11: Active portfolio management
1H 2016 consolidated results Active portfolio management ~6 €bn ~6 €bn Disposals already finalized1 (€bn) Cashed-in1,2 Additional Slovenske Elektrarne3 2.0 1.6 growth capex 1.0 €bn >2 EGP Portugal 0.5 0.5 Minority EGP North America 0.4 0.4 buy-outs 0.2 €bn <2 SE Hydropower - SF Energy 0.4 0.4 Alre
Slide 12: Group simplification: update on Latam restructuring
1H 2016 consolidated results Group simplification: update on Latam restructuring Minimun 90 trading days 2Q 2016 3Q 2016 4Q 2016 First day of trading EGMs to approve Share distribution Annual Ordinary Meetings the merger of new companies in New York of Enersis, Endesa Chile End of Tender Offer and s
Slide 13: Group simplification: Enel Green Power Spain
1H 2016 consolidated results Group simplification: Enel Green Power Spain Change in corporate structure Rationale Key figures 1.7 GW installed Simplification at country level 10 years average life 100% 70.1% Integrated energy management 180 €mn EBITDA in 2015 Improving supply & 60% 100% 2.0 €bn En
Slide 14: Acquisition and merger of Metroweb into Enel Open Fiber
1H 2016 consolidated results Acquisition and merger of Metroweb into Enel Open Fiber Corporate structure Rationale New business plan Accelerated fiber deployment 3.7 €bn capex +1.2 €bn 50% 50% Leverage on Metroweb 250 cities +26 cities Holdco industrial know-how Coverage of all largest cities 9.5 mn
Slide 15: Financial results
Investor presentation 1H 2016 consolidated results Financial results July 28, 2016
Slide 16: Ordinary EBITDA evolution (€mn)
1H 2016 consolidated results Ordinary EBITDA evolution (€mn) +3% +5% 437 (392) 117 (262) 236 105 7,812 7,929 7,688 Retail 7,426 335 1 2 1H 2015 One-offs 1H 2015 Growth Efficiency Scenario Forex 1H 2016 One-offs 1H 2016 ordinary adjusted Energy adjusted ordinary margin & retail 1. Includes: +184 €mn
Slide 17: Group adjusted EBITDA by business (€mn)
1H 2016 consolidated results Group adjusted EBITDA by business (€mn) +5% 338 (86) (392) Retail 368 (17) Retail 1,085 €mn 175 1,421 €mn 7,812 Renewables Renewables 7,426 946 €mn 920 €mn Generation Generation 1,858 €mn 2,018 €mn Networks Networks 3,529 €mn 3,522 €mn 1H 2015 Global Global Global Retail
Slide 18: Global Renewable Energies: EBITDA analysis (€mn)
1H 2016 consolidated results Global Renewable Energies: EBITDA analysis (€mn) -3% 119 (3) (132) North America (1) (9) North America 194 €mn 234 €mn 946 920 Latin America Latin America 166 €mn 198 €mn Europe2 Europe2 586 €mn 488 €mn 1H 2015 Growth Efficiency Scenario Perimeter 1 Forex 1H 2016 ordinar
Slide 19: Group adjusted EBITDA by geography (€mn)
1H 2016 consolidated results Group adjusted EBITDA by geography (€mn) +5% Renewables Renewables 946 €mn 920 €mn 605 (21) (17) 6 (392) East Europe East Europe 392 €mn 189 16 353 €mn 7,812 Latam Latam 7,426 1,397 €mn 1,636 €mn Iberia Iberia 1,731 €mn 1,747 €mn Italy Italy 3,016 €mn 3,205 €mn 1H 2015 I
Slide 20: EBITDA Italy by business (€mn)
1H 2016 consolidated results EBITDA Italy by business1 (€mn) +7% +6% 303 (31) - 16 (45) (38) Retail Retail 694 €mn 3,205 3,205 997 €mn 3,000 3,016 Generation Generation 421 €mn 383 €mn Networks Networks 1,807 €mn 1,778 €mn 1H 2015 One-offs 2 1H 2015 Infrastructure Generation Retail Services 1H 2016
Slide 21: From ordinary EBITDA to net ordinary income (€mn)
1H 2016 consolidated results From ordinary EBITDA to net ordinary income (€mn) (2,804) 7,929 (1,475) 5,125 (1,150) (758) 3,650 1,742 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes net ordinary & other 1 income 1H 2015 (€bn) 7.7 (2.9) 4.8 (1.3) 3.5 (1.2) (0.8) 1.6 Chang
Slide 22: Cash flow (€mn)
1H 2016 consolidated results Cash flow (€mn) (608) (593) 7,929 (1,123) (1,455) (3,714) 4,150 1,157 Maintenance 2,557 Growth 436 (2,140) (1,704) 211 (1,493) Ordinary Provisions 1 Working Income Financial FFO 2 Capex Free Net Net free Extraordinary Net free EBITDA capital taxes expenses cash divid
Slide 23: Net debt evolution (€mn)
1H 2016 consolidated results Net debt evolution (€mn) +593 Dec 31, 2015 June 30, 2016 continuing Net free Extraordinary asset held continuing operations cash flow activities Forex for sale 1 operations 37,545 38,138 (383) 1,704 (211) (517) Net debt on track to meet year-end guidance 1. FY 2015: ne
Slide 24: Debt and financial expenses (€mn)
1H 2016 consolidated results Debt and financial expenses (€mn) Gross and net debt Net financial expenses on debt -7% -3% 52,760 48,938 10,640 5,515 4,575 5,285 1,323 1,287 37,545 38,138 FY 2015 1H 2016 1H 2015 1H 2016 Net debt Financial receivables Cash Liability management underpins future financia
Slide 25: Forward sales
1H 2016 consolidated results Forward sales1 Italy 2016 Italy 2017 62 TWh 65 TWh Regulated / Achieved Regulated / Achieved quasi regulated 10% quasi regulated 10% 30% Price2 46 €/MWh 30% Price2 41 €/MWh Price driven Price driven 90% vs. plan vs. plan Spread driven 60% Spread driven 60% Spread3
Slide 26: Shareholder remuneration
FY 2015 consolidated results Shareholder remuneration Dividend policy Minimum DPS1 (€/sh) +13% CAGR +14% 0.18 65% 65% 0.16 55% 60% 0.14 50% 2015 2016 2017 2018 2019 2014 2015 2016 45% 55% 60% Implicit payout Proposed dividend payment on 2015 results of 0.16 € per share Implicit payout ratio of 5
Slide 27: Group targets
Investor presentation Group targets CAGR (%) 2015 Old 2016 New 2016 2017 2015-19 Ordinary EBITDA (€bn) 15.0 14.7 15.0 15.5 ~+4% Net ordinary income (€bn) 2.9 3.1 3.2 3.4 ~+11% Minimun DPS 0.161 €/sh 0.18 €/sh 0.18 €/sh - ~+17% Pay-out 50%2 55% 55% 60% +15 p.p FFO/Net Debt 25% 23% 25% 26% ~+4 p
Slide 28: FY 2015 consolidated results: Delivery on strategic plan
Investor presentation FY 2015 consolidated results Delivery on strategic plan March 23, 2016
Slide 29: Financial targets delivered
FY 2015 consolidated results Financial targets delivered 2015 2015 target vs. target 2014 ∆ yoy Recurring EBITDA (€bn) 15.0 15.0 In line 15.5 -3% Net ordinary income (€bn) 2.9 3.0 In line 3.0 -3% DPS (€/sh) 0.16 0.16 In line 0.14 +14% Net debt (€bn) 37.5 38.0 Ahead 37.4 -% FFO/Net debt 25% 23% A
Slide 30: Operational efficiency (€mn)
FY 2015 consolidated results Operational efficiency1 (€mn) Maintenance capex Opex Cash cost -7% -2% -3% 12,838 12,413 9,252 9,085 3,585 3,329 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 2015 target: 3.4 €bn 2015 target: 9.1 €bn 2015 target: 12.5 €bn 2016 target: 3.1 €bn 2016 target: 8.5 €bn 2016
Slide 31: Operational efficiency: opex evolution
FY 2015 consolidated results Operational efficiency: opex evolution Opex evolution1 (€bn) Opex by business2 -3% -18% Networks -2% €/end user 58.5 56.8 47.9 FY 2014 FY 2015 2019 +4% -20% - 0.1 (0.3) Renewables k€/MW 76.0 78.7 61.0 9.3 9.1 FY 2014 FY 2015 2019 -9% -10% Conventional Generation3 43.9 39
Slide 32: Industrial growth: growth EBITDA
FY 2015 consolidated results Industrial growth: growth EBITDA Growth EBITDA (€bn) 2015 growth EBITDA by business 70% of 2017 growth EBITDA Already covered already secured by projects in 8% 12% execution 70% of cumulative EBITDA 1.4 2015-19 already secured 32% 0.4 €bn 0.8 Spread over WACC >200 bps
Slide 33: Financial results
Investor presentation FY 2015 consolidated results Financial results March 23, 2016
Slide 34: Financial highlights (€mn)
FY 2015 consolidated results Financial highlights (€mn) FY 2015 FY 2014 ∆ yoy Revenues 75,658 75,791 -% EBITDA reported 15,297 15,757 -3% Ordinary EBITDA1 15,040 15,502 -3% EBIT reported 7,685 3,087 +149% Ordinary EBIT 9,215 9,259 -% Group net income reported 2,196 517 +329% Group net ordinary incom
Slide 35: Ordinary EBITDA evolution (€bn)
FY 2015 consolidated results Ordinary EBITDA evolution (€bn) -3% 0.3 (0.9) 0.6 (1.5) 0.4 0.5 (0.1) 0.2 15.5 15.0 Total personnel (0.9) FY 2014 Growth Efficiency Scenario Forex Release Release Early Other FY 2015 ordinary hydraulicity nuclear employees retirement ordinary & regulatory provisions bene
Slide 36: Group ordinary EBITDA by business (€mn)
FY 2015 consolidated results Group ordinary EBITDA by business (€mn) -3% 306 (393) Retail (63) 16 56 (384) Retail 1,915 €mn 15,502 1,826 €mn Renewables Provisions (€mn) 15,040 Renewables 1,815 €mn Networks (439) 1,710 €mn Generations (179) Generation Renewables (42) Generation Retail (105) 4,555 €mn
Slide 37: Enel Green Power: EBITDA analysis (€mn)
FY 2015 consolidated results Enel Green Power: EBITDA analysis (€mn) -6% 178 (27) (160) 102 (42) (21) (155) North America 1,815 North America 276 €mn 1,710 352 €mn Latin America Latin America 202 €mn 364 €mn Europe3 Europe3 1,337 €mn 994 €mn FY 2014 Growth Efficiency Scenario Forex Personnel Perimet
Slide 38: EBITDA Italy by business (€mn)
FY 2015 consolidated results EBITDA Italy by business (€mn) -5% 177 (339) 317 (24) (467) 6,293 Retail Retail 5,957 1,124 €mn 1,336 €mn Generation Generation 1,107 €mn 656 €mn Networks Networks 3,935 €mn 3,933 €mn FY 2014 Infrastructures Generation Retail Services Provisions FY 2015 ordinary & Networ
Slide 39: Group ordinary EBITDA by geography (€mn)
FY 2015 consolidated results Group ordinary EBITDA by geography (€mn) -3% Renewables Renewables 1,815 €mn 271 82 (452) 1,710 €mn 131 (63) (47) (384) East Europe East Europe 1,210 €mn 15,502 1,308 €mn Provisions (€mn) 15,040 Latam Latam 3,092 €mn Italy (467) 3,167 €mn Iberia (363) Iberia Latam (7) Ib
Slide 40: From ordinary EBITDA to net ordinary income (€mn)
FY 2015 consolidated results From ordinary EBITDA to net ordinary income (€mn) (5,825) 15,040 (2,404) 9,215 (2,280) (1,644) 6,811 2,887 Ordinary D&A EBIT Financial EBT Income Minorities Group EBITDA expenses taxes 2 net ordinary & other 1 income FY 2014 (€bn) 15.5 (6.2) 9.3 (3.0) 6.3 (2.0) 1.3 3.0 C
Slide 41: From reported Group net income to Group net ordinary income
FY 2015 consolidated results From reported Group net income to Group net ordinary income (€mn) 909 (218) 182 3,069 2,887 2,196 Reported Impairment 1 Extraordinary Group net Deferred Pro-forma Group net items 2 ordinary taxes Group net income income budget law ordinary Italy income 2014 517 4,062 (1,
Slide 42: Cash flow (€mn)
FY 2015 consolidated results Cash flow (€mn) (932) (427) (1,516) 15,040 (2,709) (7,762) 9,456 3,329 Maintenance 4,433 Growth (2,199) 1,259 754 1,694 (505) Ordinary Provisions1 Working Income Financial FFO 3 Capex Free Net Net free Extraordinary Net free EBITDA capital taxes expenses 2 cash divid
Slide 43: Net debt evolution (€mn)
FY 2015 consolidated results Net debt evolution (€mn) +162 Dec 31, 2014 2014 2015 Dec 31, 2015 on continuing asset held Net free Extraordinary asset held on continuing operations for sale cash flow Forex activities1 for sale 2 operations 37,383 37,545 (620) 841 (505) (1,137) 1,259 Net debt reduction
Slide 44: Debt and financial expenses (€mn)
FY 2015 consolidated results Debt and financial expenses (€mn) Gross and net debt Gross debt breakdown1 Net financial expenses on debt -7% Cost of debt -7% 5.1% 5.0% 5.1% 57,032 6.3% 52,760 7% 8% 4.9% 13,088 6.7% 20% 6.3% 10,640 21% 4.7% 6,561 4,575 19% 7.1% 19% 4.5% 2.5% 2.7% 4.3% 2,819 2,613
Slide 45: Merchant exposure: focus on Italy & Iberia
FY 2015 consolidated results Merchant exposure: focus on Italy & Iberia (€mn) 2015 Group EBITDA 2015 EBITDA Italy & Iberia 2015 net production Italy & Iberia 12% 16% 36% 15 €bn 9.9 €bn 146 TWh 43% 88% 84% 21% Price driven Merchant exposure 1 Merchant exposure 1 Spread driven 2 Non merchant exposure
Slide 46: 2016-23: New regulatory period for electricity distribution in Italy
Investor presentation 2016-23: New regulatory period for electricity distribution in Italy January 21, 2016
Slide 47: Summary of the regulatory decisions
New regulatory period for electricity distribution in Italy Summary of the regulatory decisions Resolutions Longer regulatory periods Published New WACC methodology Main 654/2015 - Tariff general changes Regulatory lag reduction framework Gradual approach to the extension of asset life 583/2015
Slide 48: Main changes: longer regulatory periods
New regulatory period for electricity distribution in Italy Main changes: longer regulatory periods Previous regulation (2012-15) New regulation (2016-23) Tariff regulatory period: 8 years Tariff/WACC regulatory period: 4 years 2020 2016 2023 2014 Tariff mid term review 2012 2015 Start of TOTEX regu
Slide 49: Main changes: new WACC methodology
New regulatory period for electricity distribution in Italy Main changes: new WACC methodology (2/2) 2016-18 Update rules (2019-21) Real risk-free rate 0.5% October 2017- September 2018 high rating Countries risk free rate – 0.5% floor Country risk premium 1% Based on Italy-Germany 10 year bond spre
Slide 50: Key confirmations: allowed opex
New regulatory period for electricity distribution in Italy Key confirmations: allowed opex Previous regulation New regulation 2012-15 2016-23 Distribution 2.8% 1.9% X-factor set to return to X-factor set to return to consumers the 2nd and 3rd consumers the 3rd and 4th Metering 7.1% regulatory perio
Slide 51: Estimated revenues and RAB
New regulatory period for electricity distribution in Italy Estimated revenues and RAB Allowed revenues1 (€bn) 2016 revenues breakdown -5% Depreciation 4.81 37% 4.55 25% RAB 4.55 €bn 38% Opex 2015 2016 Estimated Tariff RAB2 21 €bn Estimated 2016 revenues in line with November plan assumptions 50 1.
Slide 52: 2016-19 Strategic Plan
Investor presentation 2016-19 Strategic Plan November 18, 2015
Slide 53: Opening remarks: Enel today
Opening remarks Enel today1 North America Italy Capacity: 2.5 GW Capacity: 27.8 GW Networks: 1.14 mn km Mexico & Central America End users: 31.6 mn Capacity: 1.0 GW Free customers: 10.5 mn Latin America Iberia Capacity: 18.6 GW Capacity: 22.8 GW Networks: 0.32 mn km Networks: 0.32 mn km End users: 1
Slide 54: Key pillars: revised targets
Strategic update Key pillars: revised targets 1 Operational efficiency 2 Industrial growth 3 Group simplification 4 Active portfolio management 5 Shareholder remuneration 53
Slide 55: Operational efficiency: opex evolution (€bn)
Strategic update Operational efficiency: opex evolution (€bn) Opex evolution1 Opex by business3 Networks 58.5 -18% 47.9 March ’15 Plan €/end user 0.5 (1.4) -12% 2014 2019 9.3 0.2 Renewables 76.0 -20% 61.0 (0.3) k€/MW 8.3 -8% 2014 2019 43.9 -10% Conventional 39.3 March ‘15 Plan -1.1 €bn Generation4 -
Slide 56: Operational efficiency: focus on opex (€bn)
Strategic update Operational efficiency: focus on opex (€bn) 2019 efficiency target Headcounts (n. 000) -14% Procurement Other external 10% costs 69.0 IT 10% 25% 59.5 1.4 €bn 25% Technical Personnel 30% optimisation 2014 2019 A next level efficiency plan 55
Slide 57: Key pillars: revised targets
Strategic update Key pillars: revised targets 1 Operational efficiency 2 Industrial growth 3 Group simplification 4 Active portfolio management 5 Shareholder remuneration 56
Slide 58: Industrial growth: capex plan (€bn)
Strategic update Industrial growth: capex plan (€bn) Total capex Growth capex by business Growth capex by geography 28.5 17.0 17.0 26.6 1% +2.7 14.3 3% 14.3 1% 9% 95% 12% 1% +19% 2% -36% 12% 14.3 17.0 90% 17% 21% 34% 19% 32% +29% 25% 20% -0.8 12.3 11.5 53% -7% 49% +30% 48% 41% March'15 Plan Plan upd
Slide 59: Industrial growth: growth EBITDA (€bn)
Strategic update Industrial growth: growth EBITDA (€bn) Key drivers Growth EBITDA Cumulative growth EBITDA2 60-65% of 2017 growth EBITDA 2.6 already addressed 0.11 Renewables 2.4 Networks 29% 1.4 Spread over WACC >200 bps 7.2 €bn 49% 0.8 1.3 6.7 €bn 0.4 11% Generation 11% Average time to EBITDA <2 y
Slide 60: Industrial growth: operational targets upgrade
Strategic update Industrial growth: operational targets upgrade1 Networks Retail Renewables Conventional generation +21 mn 2nd generation +2.5 mn customers Additional growth vs March ‘15 digital meters +22.6 TWh sold2 +2.1 GW additons -0.1 GW additons +3.6 mn end users +4.7 mn new customers in +9.2
Slide 61: Key pillars: revised targets
Strategic update Key pillars: revised targets 1 Operational efficiency 2 Industrial growth 3 Group simplification 4 Active portfolio management 5 Shareholder remuneration 60
Slide 62: EGP integration: compelling rationale
Strategic update EGP integration: compelling rationale Upgrade medium/long-term growth prospects Group growth capex 2016-19 Fully exploit global growth opportunities: +9.2 GW in 2015-19 Other >50% of total group growth capex and growth EBITDA businesses 47% 85% of generation growth capex 17.0
Slide 63: Latam restructuring
Strategic update Latam restructuring Country-based model in Latam Pure Chilean group Latam investment vehicle Objectives Simplify corporate structure 60.6% >50.0% Enersis Enersis Chile Americas Align strategic interests 99.1% 60.0% Endesa Set a new industrial strategy Chilectra ARG BRA COL PE Chile
Slide 64: Latam restructuring
Strategic update Latam restructuring Efficiencies Industrial growth Dividend policy Opex & SG&A reduction Chile Chile 1.4 €bn total capex 2016-19 Base case payout to increase 60% dedicated to growth gradually from 50% to 70% Cash management + Americas = Americas 3.8 €bn total capex 2016-19 50% pay
Slide 65: Key pillars: revised targets
Strategic update Key pillars: revised targets 1 Operational efficiency 2 Industrial growth 3 Group simplification 4 Active portfolio management 5 Shareholder remuneration 64
Slide 66: Active portfolio management
Strategic update Active portfolio management Decreasing business risk profile Strategic fit Capital recycling to drive higher returns Optimising economic interests across portfolio Crystallising value through disposals Flexibility Providing additional resources to fund growth Acceleration to support
Slide 67: Key pillars
Strategic update Key pillars 1 Operational efficiency 2 Industrial growth 3 Group simplification 4 Active portfolio management 5 Shareholder remuneration 66
Slide 68: Shareholder remuneration policy confirmed
Strategic update Shareholder remuneration policy confirmed Dividend policy Transition phase Minimum DPS (€/sh) 65% 65% 60% 50% 55% 0.18 0.16 2015 2016 2017 2018 2019 2015 20161 Accelerating returns Short-term certainty 67 1. Including the impact of EGP integration
Slide 69: 2016-19 Strategic Plan: Key financials
Investor presentation 2016-19 Strategic Plan Key financials November 18, 2015
Slide 70: Operational efficiency (€bn)
Key financials Operational efficiency (€bn) -22% Maintenance capex1 -16% Cash costs 3.6 3.4 3.1 2.8 800 €mn savings -14% in 2019 vs. 2014 -10% 2014 2015 2016 2019 12.9 12.5 11.6 -10% 11.1 Opex2 -7% 9.3 9.1 2014 2015 2016 2019 8.5 8.3 ~1 €bn savings in 2019 vs. 2014 March '15 Plan 2014 2015 2016 2019
Slide 71: EBITDA evolution: retail (€bn)
Key financials EBITDA evolution: retail (€bn) +31% Main business drivers 0.3 (0.5) Free >15% in power and gas 0.2 customers 0.5 2.1 1.6 Volumes +20% in power and +30% in gas sold Cost to ~5% reduction serve New +0.3 €bn in B2C and B2B segments Services 2015 Customer Efficiency New Unitary 2019 base
Slide 72: EGP integration
Key financials EGP integration EBITDA at regime NPV Acceleration of growth with +1.3 €bn of optional capex and +0.9 GW 150 €mn 0.25 €bn installed in 2019 Growth Increasing flexibility in active portfolio management - 0.1 €bn Increasing synergies with networks, conventional generation and retail
Slide 73: Latam restructuring (€bn)
Key financials Latam restructuring (€bn) EBITDA evolution 2015-19 Main drivers Efficiency 0.4 4.0 Opex savings of ~0.3 €bn 0.3 0.8 3.1 (0.6) Industrial growth Increased flexibility and optionality Shorter time to EBITDA Free cash flow Flexibility on usage 2015 Scenario & Energy Efficiency Growth 201
Slide 74: EBITDA evolution (€bn)
Key financials EBITDA evolution (€bn) +15% +3% +12% 0.2 17.3 1.2 0.3 1.0 15.5 0.1 15.0 (1.5) 0.7 (0.2) 0.5 2015 Scenario & Active Energy Efficiency Growth 2017 Scenario & Efficiency Growth Active 2019 regulatory portfolio margin regulatory portfolio mgmt 1 & retail mgmt 2 Further acceleration on eff
Slide 75: EBITDA evolution (€bn)
Key financials EBITDA evolution (€bn) EBITDA by geography1 EBITDA by business1 2015 2019 2015 2019 46% 43% 21% 21% 21% 23% 2% 15 8% 17 15 17 16% 11% 16% 31% 11% 28% 38% 36% 11% 12% 1% Regulated and 70% 75% quasi-regulated Italy Latam Renewables Networks Generation2 Retail Iberia East Europe S&
Slide 76: Group net income evolution (€bn)
Key financials Group net income evolution (€bn) +45% +13% +29% 1.8 0.2 (0.2) (0.5) (0.4) 4.4 0.5 0.2 (0.2) (0.1) (0.2) 0.2 3.4 3.0 Group net EBITDA Financial D&A Income tax ∆ EGP Group net EBITDA Financial D&A Income tax ∆ Group net income expenses Minorities Integration income expenses Minorities i
Slide 77: Financial plan and strategy
Key financials Financial plan and strategy Gross and net debt (€bn) Net financial expenses on debt (€bn) ~(9.5) -18% 6.0% 5.1% 4.9% 57.0 53.5 51.2 5.0% 13.1 47.5 11.0 8.5 6,5 2.8 4.5 4.0% 6.5 4.5 4.0 2.6 2.5 2.3 3.0% 37.4 38.0 38.2 37.0 2.0% 1.0% 0.0% 2014 2015 2016 2019 2014 2015 2016 2
Slide 78: Breakdown of gross debt cost evolution
Key financials Breakdown of gross debt cost evolution Gross debt breakdown Cost of gross debt 2014 2019 ~7% Hybrid bonds 6.3% 6.5% ~20% ~7% ~19% ~27% Emerging markets2 6.7% 7.9% ~20% Banks and other 2.5% 2.6% ~54% ~46% Bonds1 5.4% 3.9% 2014 2019 Average cost of debt 5.1% 4.9% Bonds1 Emerging markets
Slide 79: Cash flow generation: cumulative 2016-19 (€bn)
Key financials Cash flow generation: cumulative 2016-19 (€bn) 64 (4) - (9) (10) 41 (12) 29 (14.5) 14.5 (12) 2.5 1 3.5 (3.5) Recurring ∆ Provisions 1 ∆ NWC and Income taxes Financial FFO Maintenence FFO after Net growth FCF Net Net FCF Cash-in from Net cash Acquisitions EBITDA other paid expenses cap
Slide 80: Annexes
Investor presentation 1H 2016 consolidated results Annexes
Slide 81: Market context in the period
1H 2016 consolidated results Market context in the period (change yoy) Electricity demand Average spot power prices (€/MWh) Currencies vs. euro1 Spot price2 49.8 Italy -2.0% Italy 43 -24% USD/EUR -% 37.9 Spain -0.1% 48.5 Spain 42 -35% CLP/EUR -10% 31.5 Chile 3.5% 134.9 Chile -52% COP/EUR -20% 64.5
Slide 82: Operational highlights
1H 2016 consolidated results Operational highlights Installed capacity (GW) Net production (TWh) -3% -8% 89.7 139.6 128.2 87.0 17.2 Renewables 10.5 18.2 11.1 Conventional 122.4 110.0 generation 79.2 75.9 37% 34% Load factor FY 2015 1H 2016 1H 2015 1H 2016 Electricity distributed (TWh) Number of cust
Slide 83: Operational highlights – Generation
1H 2016 consolidated results Operational highlights – Generation Installed capacity (GW) Net production (TWh) -3% -8% (0.6) (10.5) - (3.3) 139.6 (2.0) 1.7 89.7 - 0.6 128.2 87.0 FY 2015 Nuclear Thermal Hydro Other 1H 2016 1H 2015 Nuclear Thermal Hydro Other 1H 2016 Renewables Renewables 82
Slide 84: Operational highlights – Distribution
1H 2016 consolidated results Operational highlights – Distribution Electricity distributed (TWh) End users (mn) +1% +1% 1.8 0.6 0.1 0.4 - (0.4) 209.5 61.5 207.4 61.1 1H 2015 Italy Iberia Latam East 1H 2016 1H 2015 Latam Rest of 1H 2016 Europe World 83
Slide 85: From EBITDA to net income (€mn)
1H 2016 consolidated results From EBITDA to net income (€mn) 1 1H 2016 1H 2015 1H 2016 1H 2015 ∆ yoy ∆ yoy reported reported ordinary ordinary EBITDA 8,053 7,961 1.2% 7,929 7,688 3.1% D&A 2,843 2,877 2,804 2,877 EBIT 5,210 5,084 2.5% 5,125 4,811 6.5% Net financial charges (1,527) (1,277) (1,527) (1,
Slide 86: Reported EBITDA matrix (€mn)
1H 2016 consolidated results Reported EBITDA matrix (€mn) Global Generation Global Infrastructure Renew able Services Retail Total3 Total3 & Trading & Netw orks Energies & Other 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 Italy 506 562 1,778 1,807
Slide 87: Ordinary EBITDA matrix (€mn)
1H 2016 consolidated results Ordinary1 EBITDA matrix (€mn) Global Generation Global Infrastructure Renew able Services Retail Total4 Total4 & Trading & Netw orks Energies & Other 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 Italy 382 421 1,778 1,807
Slide 88: EBITDA from Reported to Adjusted: breakdown by geography
1H 2016 consolidated results EBITDA from Reported to Adjusted: breakdown by geography Global East 1H 2016 Italy Iberia Latam Renewable Other Total Europe Energies Reported 3,329 1,856 1,625 353 920 (30) 8,053 Extraordinary items 124 - - - - - 124 Ordinary 3,205 1,856 1,625 353 920 (30) 7,929 One-off
Slide 89: EBITDA from Reported to Adjusted: breakdown by business line
1H 2016 consolidated results EBITDA from Reported to Adjusted: breakdown by business line Global Global Global Services 1H 2016 Generation Infrastructure Renewable Retail Total & Holding & Trading & Networks Energies Reported 2,216 3,525 920 1,437 (45) 8,053 Extraordinary items 124 - - - - 124 Ordin
Slide 90: Operational efficiency: opex (€mn)
1H 2016 consolidated results Operational efficiency: opex (€mn) -5% -4% 4,424 (12) 4,412 4,219 (31) 4,188 2,334 2,327 2,229 2,230 Personnel -4% -4% External costs 2,399 2,394 2,297 2,265 Capitalized costs (309) (309) (307) (307) 1H 2015 One-offs1 1H 2015 1H 2016 One-offs1 1H 2016 Reported Adjusted A
Slide 91: Forward sales
1H 2016 consolidated results Forward sales Chile Colombia 100% 100% 100% 90% 90% 75% 2016 2017 2019 2016 2017 2019 73 67 65 51 52 56 Peru Brazil 100% 100% 100% 100% 100% 80% 2016 2017 2019 2016 2017 2019 50 48 48 53 53 63 90 Hedged production Unhedged production - Average price (€/MWh)
Slide 92: Capex
1H 2016 consolidated results Capex1 By activity By business By geography 1% 6% 31% 9% 33% 38% 16% 3.7 €bn 3.7 €bn 3.7 €bn 47% 69% 18% 20% 11% 1% Networks Generation Latam Iberia Retail Renewables Italy North America Maintenance Growth Other East Europe Other 1. Gross of contribution. Includes assets
Slide 93: Capex by business (€mn)
1H 2016 consolidated results Capex by business1 (€mn) +20% 3,714 S&H2 17 +6% 3,092 16 Renewables +79% 1,742 Services&Holding 2 973 Latam Renewables -26% Latam Iberia Iberia 791 585 +11% East Europe 356 396 East Europe Italy -2% 340 332 Italy 616 642 +4% 1H 2015 1H 2016 1. Gross of contribution. Incl
Slide 94: Gross debt structure
1H 2016 consolidated results Gross debt structure Long term debt by currency Long term debt by currency after swap Gross debt interest rate composition 58% 83% 21% 47.6 €bn 2% 47.6 €bn 11% 4% 79% 1% 3% 7% 3% 21% 4% 1% 2% EUR USD BRL CLP EUR USD BRL Floating Fixed + Hedged COP Other GBP CLP COP Other
Slide 95: Debt structure by instrument (€bn)
1H 2016 consolidated results Debt structure by instrument (€bn) East Europe Debt by instrument Enel Spa EFI Italy Iberia Latam Renewables Total & Other Bonds 13.45 18.74 - 0.10 3.50 - 0.44 36.23 Bank Loans - - 3.16 0.65 1.02 3.30 0.32 8.45 Tax Partnership - - - - - 1.06 - 1.06 Other Loans - - - 0.53
Slide 96: Debt maturity coverage split by typology (€bn)
1H 2016 consolidated results Debt maturity coverage split by typology (€bn) 24.6 19.2 5.2 Available committed credit lines1 13.7 19.4 6.9 6.0 5.4 1.4 2.1 1.1 3.6 Short term2 Cash 5.5 1.2 2.5 Bank Loans and 5.5 1.3 Others 0.4 4.3 2.7 2.1 2.3 Bonds 1H 2016 < 2H 2017 2H 2017 2018 2019 2020 After 2020 1
Slide 97: Group total net installed capacity by technology and geography
1H 2016 consolidated results Group total net installed capacity: breakdown by technology and geography Solar Oil&Gas MW Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 12,421 728 761 99 - 6,478 4,535 2,739 27,760 Iberia 4,763 1,616 - 46 3,318 5,168 5,445 2,417 22,774 Latam 9,985
Slide 98: Group total net production by technology and geography
1H 2016 consolidated results Group total net production: breakdown by technology and geography Solar Oil&Gas GWh Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 8,571 765 2,935 50 - 13,817 3,283 191 29,611 Iberia 5,085 2,015 - 90 12,843 6,580 2,836 3,198 32,648 Latam 16,946 1,74
Slide 99: Group total additional capacity by technology and geography
1H 2016 consolidated results Group total additional capacity: breakdown by technology and geography Solar Oil&Gas MW Hydro1 Wind Geothermal Nuclear Coal CCGT Total & Other ST/OCGT Italy 3 8 - 15 - - - - 26 Iberia - - - - - - - - - Latam 40 112 - 298 - - - - 450 East Europe - - - - - - - - - Romania
Slide 100: EGP projects in execution (MW)
1H 2016 consolidated results EGP projects in execution: breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - 8 2 - 32 42 Iberia - - - - - - Latam 783 152 38 869 - 1,842 East Europe 1 154 - - - - 154 North America 658 - - 150 - 808 Other Countries2 904 - - 1
Slide 101: EGP projects under construction (MW)
1H 2016 consolidated results EGP projects under construction : breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - 8 - - 1 9 Iberia - - - - - - Latam 611 152 38 766 - 1,567 East Europe 1 - - - - - - North America 658 - - 150 - 808 Other Countries2 199 - -
Slide 102: EGP projects ready to build (MW)
1H 2016 consolidated results EGP projects ready to build : breakdown by technology and geography (MW) MW Wind Hydro Geothermal Solar Biomass Total Italy - - 2 - 31 33 Iberia - - - - - - Latam 172 - - 103 - 275 East Europe 1 154 - - - - 154 North America - - - - - - Other Countries2 705 - - - - 705 T
Slide 103: Global Renewable Energies gross pipeline
1H 2016 consolidated results Global Renewable Energies gross pipeline1 Pipeline by technology Pipeline by geography Pipeline by COD 3% 16% 27% 1% 62% 19.6 GW 15% 19.6 GW 19.6 GW 51% 21% 34% 52% 18% Wind Solar Latam Europe 2017 2018 >2018 Hydro Geo RoW North America 1. As of June 30, 2016 102
Slide 104: Global Renewable Energies contracts portfolio
1H 2016 consolidated results Global Renewable Energies contracts portfolio1 By geography By credit rating By remaining contract duration 20% AA 4% 45% 4% 7% 37% 7% 4% BBB 21% 27% 16% 63% 89% 5% 18% 5% A 28% AA+ AA AA- Latam North America 0-10 yrs 10-15 yrs >15 yrs A+ A A- BBB+ BBB BBB- 1. Based on p
Slide 105: Industrial growth: recently awarded renewable auctions
1H 2016 consolidated results Industrial growth: recently awarded renewable auctions Mexico Peru Enel competitive advantage Technology Solar PV Wind / Solar PV / Hydro First utility scale plants Capacity 1,000 MW 326 MW Global procurement Production 2,250 GWh 1,200 GWh Multiple bids approach Capex
Slide 106: Industrial growth: installation cost evolution
1H 2016 consolidated results Industrial growth: installation cost evolution1 Wind unitary capex evolution ($m/MW) Solar unitary capex evolution ($m/MW) Chile Chile 1.9 1.8 Peru Mexico 1.3 0.9 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Technological improvement drives increasing cost comp
Slide 107: FY 2015 consolidated results: Annexes
Investor presentation FY 2015 consolidated results Annexes
Slide 108: Operational highlights
FY 2015 consolidated results Operational highlights Installed capacity (GW) Net production (TWh) -7% -% 96.1 89.7 Renewables1 9.6 10.5 Conventional 283 284 86.5 79.2 generation Load factor 34% 36% FY 2014 FY 2015 FY 2014 FY 2015 Electricity distributed (TWh) Number of customers2 (mn) +2% +1% 411 417
Slide 109: From EBITDA to net income (€mn)
FY 2015 consolidated results From EBITDA to net income (€mn) 2014 2014 2015 2015 reported ∆ yoy ordinary ∆ yoy reported 1 ordinary 1 restated restated EBITDA 15,297 15,757 -2.9% 15,040 15,502 -3.0% D&A (7,612) (12,670) (5,825) (6,243) EBIT 7,685 3,087 n.s. 9,215 9,259 -0.5% Net financial charges (2,
Slide 110: EBITDA reported matrix (€mn)
FY 2015 consolidated results EBITDA reported matrix (€mn) Global Generation Global Infrastructures Renew able Services Retail Total & Trading & Netw orks Energies & Other FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 FY 2014 FY 2015 Italy 797 1,157 3,933 3,935 - - 1,336 1,1
Slide 111: Operational efficiency: opex (€mn)
FY 2015 consolidated results Operational efficiency: opex (€mn) +5% -2% 9,138 114 9,252 9,581 9,085 (496) 3,665 Personnel 4,550 4,618 -% 4,610 9,787 9,267 External costs 6,594 5,237 5,283 -3% 5,153 Capitalized costs -649 -649 -678 -678 FY 2014 One-offs1 FY 2014 FY 2015 One-offs1 FY 2015 reported adj
Slide 112: Capex
FY 2015 consolidated results Capex1 By activity By business By geography 43% 2% 12% 8% 32% 36% 43% 7.8 €bn 7.8 €bn 7.8 €bn 24% 2% 57% 28% 13% Networks Generation Latam Iberia Retail Renewable Italy Row Energy Maintenance Growth Other East Europe 1. Gross of contribution. Includes assets held for sal
Slide 113: Production mix (TWh)
FY 2015 consolidated results -5% Production mix (TWh) 71.8 68.5 0.4% 0.6% 8.6% 10.4% Group production mix 49.2% 52.5% Italy -% 9.7% 10.4% 283.1 284.0 32.1% 26,1% 10.5% 10.1% 13.2% 14.3% FY 2014 FY 2015 29.0% 30.2% +2% 13.8% 14.0% 7.2% 8.2% 211.3 215.5 26.3% 23.2% 13.9% 13.1% 14.8% 15.5% FY 2014 FY 2
Slide 114: Group total net production by technology and geography
FY 2015 consolidated results Group total net production: breakdown by technology and geography Other Oil&Gas GWh Large Hydro Hydro EGP Nuclear Coal CCGT Total renewables ST/OCGT Italy 11,939 5,974 7,110 - 35,954 7,147 394 68,518 Iberia 7,175 75 4,309 25,756 26,139 7,495 6,495 77,444 Latam 34,012 3,5
Slide 115: EGP net production by technology and geography
FY 2015 consolidated results EGP net production: breakdown by technology and geography GWh Hydro Geothermal Wind Other Total Italy 5,974 5,809 1,118 175 13,076 Iberia 75 - 4,094 214 4,383 Latam 3,504 - 2,929 277 6,710 Romania - - 1,286 44 1,330 North America 849 396 6,078 45 7,368 Rest of Europe 1 2
Slide 116: 2016-19 Strategic Plan annexes
Investor presentation 2016-19 Strategic Plan annexes
Slide 117: Commitments to United Nations Sustainable Development Goals
Strategic update annexes Commitments to United Nations Sustainable Development Goals Context Enel’s positioning Access to Electricity: 3 million beneficiaries in Africa, Asia, Latam by 2020 United Nations’ post-2015 Education: 400,000 beneficiaries by 2020 Sustainable Development Goals Social
Slide 118: Assumptions: commodities and prices
Strategic update annexes Assumptions: commodities and prices Commodities March plan Plan update Forward 1 Power prices Brent $/bbl Coal $/ton Italy €/MWh Spain €/MWh 75 74 84 55 57 69 52 52 52 63 60 64 52 52 66 59 49 49 63 60 48 50 55 56 46 58 49 49 47 47 46 53 45 46 49 43 2015 2016 2017 2015 2016 2
Slide 119: Assumptions: macroeconomics and FX
Strategic update annexes Assumptions: macroeconomics and FX 1 2 GDP Electricity demand (yoy) 3.1% 2.5% 2.40% 3.00% 3.00% 3.60% 0.60% 1.20% 2.1% 2.9% 1.10% 1.20% 1.8% 1.7% -1.20% 0.90% 1.40% 0.70% 2015 2016 2017 2015 2016 2017 Spain Italy Latam Spain Italy Latam FX - EUR/USD FX - EUR/BRL FX - EUR/COP
Slide 120: Italy: targets
Strategic update annexes Italy: targets Capex (€bn) EBITDA (€bn) ~5.81 ~5.71 ~5.81 ~2.01 ~0.2 ~1.2 ~1.4 ~1.4 ~1.71 ~1.61 ~0.1 ~0.7 ~0.2 ~0.7 ~0.8 ~0.1 ~0.2 ~0.3 ~1.1 ~1.3 ~1.7 ~3.8 ~3.5 ~3.5 2015 2016 2017 2015 2016 2017 Networks Conventional generation Retail 119 1. Including Services
Slide 121: Iberia: targets
Strategic update annexes Iberia: targets Capex (€bn) EBITDA (€bn) ~3.11 ~3.21 ~3.21 ~1.21 ~1.21 ~1.01 2015 2016 2017 2015 2016 2017 120 1. Including Services
Slide 122: Latam: targets
Strategic update annexes Latam: targets1 Capex (€bn) EBITDA (€bn) ~3.31 ~3.71 ~3.11 ~1.4 ~1.5 ~1,91 ~1.4 ~1.61 ~1.31 ~0,9 ~0.9 ~0.7 ~1.8 ~2.0 ~2.2 ~0,9 ~0.7 ~0.5 2015 2016 2017 2015 2016 2017 Conventional generation Networks 121 1. Including Services
Slide 123: East Europe: targets
Strategic update annexes East Europe: targets1 Capex (€bn) EBITDA (€bn) ~0.4 ~0.4 ~0.4 ~0.2 ~0.2 ~0.2 2015 2016 2017 2015 2016 2017 122 1. Net of assets held for sale (Slovenske Elektrarne)
Slide 124: Global Renewable Energies: targets
Strategic update annexes Global Renewable Energies: targets1 Capex (€bn) EBITDA (€bn) ~2.6 ~2.6 ~2.3 ~2.4 ~2.0 ~1.72 2015 2016 2017 2015 2016 2017 123 1. Net of disposals 2. Net of 3Sun consolidation effect’
Slide 125: Cash flow generation: focus by country (Italy, Iberia)
Strategic update annexes Cash flow generation: focus by country (€bn) Italy Iberia 2016-19 cumulative 2016-19 cumulative 14.4 4.6 9.6 2.6 9.8 3.2 7.0 2.0 5.1 6.6 Operating Maintanance FFO after Growth Free Operating Maintanance FFO after Growth Free cash flow capex maintenance capex cash flow cash f
Slide 126: Cash flow generation: focus by country (Latam, East Europe)
Strategic update annexes Cash flow generation: focus by country (€bn) Latam1 East Europe 2016-19 cumulative 2016-19 cumulative 10.2 3.0 1.2 0.6 7.2 2.5 4.7 0.6 0.2 0.4 Operating Maintanance FFO after Growth Free Operating Maintanance FFO after Growth Free cash flow capex maintenance capex cash flow
Slide 127: Cash flow generation: Global Renewable Energies
Strategic update annexes Cash flow generation: focus by country (€bn) Global Renewable Energies 2016-19 cumulative 6.0 0.7 9.1 5.3 ~1.3 optional capex -3.8 Operating Maintanance FFO after Growth Free cash flow capex maintenance capex cash flow capex 126
Slide 128: Global Renewable Energies: operational efficiency
Strategic update annexes Global Renewable Energies: operational efficiency Opex1 (K€/MW) Key levers -20% Strong economies of scale 76 61 Largest share of new capacity added in technologies with lower unit cost Maintenance contracts optimization 2014 2019 Operating excellence as a key competitive adv
Slide 129: Global Renewable Energies: capex in execution
Strategic update annexes Global Renewable Energies: capex in execution1 By geography By technology By year 3% 68% 8% 44% 42% 1% 11% 4% 5.6 €bn 5.6 €bn 5.6 €bn 23% 46% 5% 45% Latam Europe Wind Solar Hydro 2016 2017 2018 RoW North America Geo Other Over 60% of 2016-19 total growth capex in execution
Slide 130: Global Renewable Energies: 2016-19 targets
Strategic update annexes Global Renewable Energies: 2016-19 targets Planned additional capacity1 Total capex1 EBITDA (€bn) North North America America 16% 11% 2.3 2.0 1.7 Rest of 31% Rest of World 7.7 GW World 28% 9.7 €bn Latin 47% Latin 42% America America Europe 11% Europe 14% 2015E 2016 2017 1
Slide 131: Global Infrastructure & Networks: operational efficiency
Strategic update annexes Global Infrastructure & Networks: operational efficiency (€bn) Cash Cost1 (K€/end user) Opex1 (K€/end user) Maintenance capex1 (K€/end user) -19% -18% -21% -12% 92.1 74.6 58.5 48.0 33.6 26.7 2014 2019 2014 2019 2014 2019 Europe 89.4 -19% 72.0 56.5 -20% 45.4 32.8 -19% 26.6 La
Slide 132: Global Infrastructure & Networks: industrial growth
Strategic update annexes Global Infrastructure & Networks: industrial growth +1.3 €bn growth capex Growth capex by geography Growth capex by project in 2016-19 East Europe Smart Grid +28 mn smart meters1 3% 6% Iberia Italy Quality & 26% 22% Smart Meters Efficiency 41% Strong focus on new 5.8 €bn 5.8
Slide 133: Italy 2nd generation smart meters
Strategic update annexes Global Infrastructure & Networks: Italy 2nd generation smart meters TRADER ESCO AGGREGATORS Key data 2016-19 Main benefits CENTRAL SYSTEM Capex: 1.8€bn Service quality: >10 €mn TELECOM GRID (GPRS/3G/LTE) CONCENTRATOR 2nd generation smart meter: 21mn Operational excellence: >
Slide 134: Global Generation: operational efficiency (1/2)
Strategic update annexes Global Generation: operational efficiency (1/2) Key levers Installed capacity (GW) EBITDA per MW (€m/MW)1 Decommissioning or disposal -23% +28% for low profitability assets 86 5 74 66 58 Best practices alignment 27 3 25 17 16 11 15 Leverage on Global Procurement 21 12 2014 2
Slide 135: Global Generation: operational efficiency (2/2)
Strategic update annexes Global Generation: operational efficiency (2/2) Cash Cost1 (k€/MW) Opex1 (k€/MW) Maintenance Capex (k€/MW) -14% -11% -10% 57.2 49.3 -7% -25% 43.9 39.3 -21% 13.3 10.0 2014 2019 2014 2019 2014 2019 March ’15 Plan -2% of lean organization and -2% of O&M best practices and -11%
Slide 136: Global Trading: general overview
Strategic update annexes Global Trading: general overview Power sales (TWh) Coal purchased (Mt) Gas managed (bcm) 23% 32% 24% 23% 28% 309 23% 40 29 36% 10% 4% 18% 36% 43% Italy East Europe Iberia Latam Geographically and technologically diversified portfolio 135
Slide 137: Global Trading: managerial actions on gross margin
Strategic update annexes Global Trading: managerial actions on gross margin 1 Global gas portfolio reshape and restructuring 50-55% 2 Power wholesale trading optimisation 30-35% 3 Fuel purchase and logistic optimisation 5-10% 4 5-10% Innovative hedging contracts & commercial activity in developing m
Slide 138: Global Trading: global gas portfolio reshape and restructuring
Strategic update annexes Global Trading: global gas portfolio reshape and restructuring Key market references Gas managed €/MWh $/bbl 35 120 30 100 25 39% 80 20 60 44% 29 bcm 15 40 10 5 20 17% 0 0 Jul/13 Jan/14 Jul/14 Jan/15 Jul/15 Spot BRENT ICE ($/bbl) DX TTF (€/MWh) SX Long Term expiring 2016-202
Slide 139: Disclaimer
Investor presentation Disclaimer This presentation contains certain forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward- looking statements are base
Slide 140: Contact us
Investor presentation Contact us Luca Passa Head of Group Investor Relations Elisabetta Ghezzi Investor Relations Holding Donatella Izzo Investor Relations Sustainability and Other Countries Email Marco Donati investor.relations@enel.com Investor Relations Reporting and Corporate Governance Phone +3